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STEVEN M. PHILLIPS v. ALMONT HOMES NE, INC.

Citation: Not availableDocket: A22A0643

Court: Court of Appeals of Georgia; August 19, 2022; Georgia; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

This case concerns an appeal by the appellants against a trial court's decision to partially cancel their notice of lis pendens against a developer, Almont Homes. The appellants, alleging damage to their adjacent property due to Almont's development activities, filed claims for trespass, nuisance, and negligence, seeking injunctive relief. Almont Homes moved to cancel the lis pendens, arguing that the appellants had adequate legal remedies and that the notice was too broad. The trial court ruled in favor of Almont Homes, partially canceling the lis pendens for completed lots but maintaining it for those under construction. On appeal, the appellate court conducted a de novo review, focusing on whether the properties were involved in the litigation as per the pleadings, not on the likelihood of the appellants' success in obtaining relief. The appellate court found that the trial court overstepped its bounds by assessing the merits of the underlying claims, a matter reserved for summary judgment. Consequently, the appellate court reversed the trial court's decision, reinstating the lis pendens for all properties, as the relief sought by the appellants could necessitate actions across all of Almont Homes' properties. The appellate decision was unanimous, with Justices Mercier and Markle concurring, and it distinguished the case from prior rulings cited by Almont Homes, such as Hutson v. Young.

Legal Issues Addressed

Equitable Relief and Property Involvement

Application: Plaintiffs seeking equitable relief related to ongoing damage or violations must demonstrate that the properties in question are directly included in the litigation for maintaining a lis pendens.

Reasoning: The appellate courts have established that property is involved when a plaintiff seeks equitable relief related to ongoing damage or violations affecting their property.

Lis Pendens under Georgia Law

Application: The court held that a lis pendens can be filed when property is involved in litigation, defined as property directly referenced in the pleadings where relief is sought.

Reasoning: Under Georgia law, a lis pendens can be filed when property is involved in litigation, defined as property directly referenced in the pleadings where relief is sought.

Scope of Trial Court's Authority in Lis Pendens Cancellation

Application: The trial court exceeded its authority by assessing the merits of the underlying lawsuit rather than determining if the common law requirements for a valid lis pendens were met.

Reasoning: The trial court erroneously concluded that the completed construction lots were not involved since it believed the Phillipses could not obtain injunctive relief regarding those lots, effectively assessing the merits of the underlying lawsuit.

Standard of Review for Lis Pendens

Application: The appellate court reviewed the trial court's decision de novo, indicating that the determination of whether properties were involved in the litigation should be based on pleadings rather than the likelihood of success.

Reasoning: The court’s review of this legal issue is de novo.